Leader Automotive Group Settlement: Claim From The $20M Fund

09 December 2025

● Published On : 09 December 2025

Today’s topic: Leader Automotive Group Settlement.

The $20 million settlement in the Leader Automotive Group lawsuit is a big win for consumer protection. In this lawsuit, the Federal Trade Commission, along with the Illinois Attorney General, sued Leader Automotive Group and its parent company, AutoCanada, for allegedly committing widespread fraud against consumers.

In this article, we will be breaking down the following things:

Major allegation against Leader Automotive Group.
The cause of the lawsuit.
Detail the deceptive practices.
Explain who is eligible for a refund.

So, here we provide comprehensive information on the Leader Automotive Group settlement. We will detail the deceptive practices, explain who is eligible for a refund, and give practical advice on how to secure your share of the money.

What Happened – Overview Of The Allegations Against Leader Automotive Group

The FTC and the Attorney General of Illinois filed a joint lawsuit charging Leader Automotive Group with significant findings. According to the complaint, it was a focused fraud campaign whose aim was to overcharge customers for developing fat margins.

The series of illegal practices was embraced by the Leader Auto Marts network of ten dealerships. The settlement in question involves Leader Automotive Group and its parent company, AutoCanada.

The affected dealerships primarily served the Illinois market and operated under major brand names, including:

Audi – Bloomington-Normal
Mercedes-Benz of Bloomington-Normal
Volkswagen of Bloomington-Normal
Subaru of Bloomington
Lincoln of Normal
Volvo Cars – Normal

Leader Automotive Group Illinois Settlement: The Core Deceptive Practices

The leader automotive group settlement addresses several key categories of misconduct that harmed consumers between April 2021 and September 2023.

1. Bait-and-Switch Pricing

Though dealerships would advertise vehicles online for enticingly low prices, often customers would arrive, and a salesperson would say the price was no longer valid, or they would be directed to more expensive cars. The low prices were a lure.

2. Unauthorized Add-Ons And Junk Fees

Salespeople would often add hundreds, sometimes thousands, of dollars in hidden costs onto a vehicle’s purchase price. These junk fees frequently consisted of mandated add-ons, such as protective coatings, including Xzilon, or theft protection, like LoJack.

In approximately 80% of customer cases, at least one add-on had been charged, usually unbeknownst to them or against their will, according to Hudson Cook.

3. Deceptive Certified Pre-Owned Sales

The group represented that certain used cars were “certified pre-owned.” However, the group failed to properly certify the vehicles with the manufacturer.

This omission meant customers paid hundreds or thousands of dollars for certification and did not get the limited warranty benefit that CPO status should provide.

4. Online Fake Reviews

The management reportedly asked employees to post fake, positive online reviews. They threatened not to pay the employees who refused to post positive online reviews to maintain the reputation of the dealerships.

5. Undisclosed Gray-Market Vehicles

Leader Automotive Group sold vehicles to US customers that had been manufactured for sale in Canada. Without disclosing that this importation often resulted in a voiding of the original warranty by the manufacturer, the respondents deceptively advertised those cars as covered.

Understanding The Leader Automotive Group Settlement: What’s In The Deal (2024–25)?

The Leader Automotive Group settlement is a landmark case. It represents the largest judgment the FTC has ever obtained against an auto dealer.

Therein, Leader Automotive Group and AutoCanada agreed to pay a proposed $20 million monetary judgment.

Record-Breaking Fine

This large-scale penalty sends an unmistakable signal on regulation to the entire auto-sales industry.

Consumer Refund Fund

The full $20 million should be utilized for consumer refunds that were harmed due to the fraudulent practices.

Of the money, $200,000 was placed in the Illinois Attorney General’s fund to continue consumer protection work.

What The Settlement Requires Going Forward

Beyond the monetary fine, the leader automotive group settlement imposes strict and permanent injunctions aimed at protecting consumers in their future purchases. Some of the stipulations are exactly in line with the FTC’s new CARS Rule (Vehicle Shopping Rule). Additionally, they are an integral part of the leader automotive group lawsuit:

Full Price Disclosure

The companies must clearly and conspicuously disclose a vehicle’s Offering Price-the actual sale price any consumer can pay, excluding only required government charges. The price would be required to be in all advertising and other communications.

The dealer must obtain express, informed consent from the consumer before charging the consumer for any add-on, fee, or product. Consumers must know they are paying an extra charge for something that is not required, and they must agree to it.

Cease Deception

The defendants will be permanently barred from the deceptive marketing practices and bait-and-switch schemes alleged in the complaint.

Why This Settlement Matters: A Precedent For Auto-Sales

This leader automotive group settlement is important to put all auto dealerships on notice.

Importance Of This Precedent

This is more than a large fine. It reflects heightened regulatory scrutiny of common abusive dealer practices.

Systemic Enforcement

The action, taken together with recent FTC settlements against dealers in Arizona and Maryland, shows a commitment to cracking down on systemic dealer fraud across the nation.

Transparency Requirement

Stringent disclosure of Offering Price and explicit consent give full meaning to transparency in the sale of cars, which may even call for a change in the standard sale practices.

Broader Implications Of The Leader Automotive Group Settlement

The settlement helps in redefining consumer protection in the high-pressure world of selling cars.

Fair Pricing

It aims to catch the unfair approach of advertising a low price and tacking on thousands in fees at the final stage of the sale.

Consumer Confidence

The FTC and IL AG work to restore confidence among consumers in online shopping and dealership reputations with the crackdown on fake reviews.

Leader Automotive Group Settlement Punishes Creation of Misleading Marketplace.

What Affected Consumers Should Do: How To Benefit?

The $20 million is allocated for refunds, but it’s up to consumers to learn how to get their money from the Leader Automotive Group settlement. These funds are administered by the FTC, which generally contacts eligible consumers directly.

Who Is Eligible?

You are likely eligible if- You purchased a vehicle from a Leader Automotive Group dealership in Illinois between April 2021 and September 2023. Your purchase included unauthorized add-on fees, mandatory add-ons, improper certification fees, or an inflated price due to deceptive advertising.

Step-by-Step Advice

Preparing for the Refund. The process of refunding is very complex and time-consuming. You must prepare now.

1. Gather Documents

Find your copy of the full vehicle purchase agreement, sales contract, and financing documents. Search the contracts for line items for add-ons such as “Xzilon,” “LoJack,” “GAP coverage,” or “Certification Fee” that you did not agree to purchase.

2. Wait For Official Notice

Official notices and/or refund checks are usually mailed or e-mailed to the address provided at the time of the vehicle purchase by the FTC. Do not submit claims on any third-party websites. Check with the official FTC website for updates on when the distribution will take place.

3. Verification Is Key

When you receive a refund check or notice, verify its legitimacy against the official FTC press releases. Remember, the FTC will never ask you to pay a fee, provide personal bank information, or cash a check and send a portion back.

Frequently Asked Questions (FAQs):

Understanding the leader automotive group settlement can empower you if you were a victim of these or similar dealer tactics.

Q1. Will The Amount Be A Full Refund Or A Partial Payment?

Ans. The refund amount is not guaranteed to equal the full amount you were overcharged. The $20 million will be distributed pro rata, divided among all eligible consumers. If the total documented losses by all claimants are more than $20 million, everyone will receive a partial, proportional refund.

The amount you receive depends on the documentation of your loss and the total number of approved claims in the Leader Automotive Group settlement.

Q2. What If I Was Charged Unauthorized Fees But Signed A Contract?

Ans. The FTC and IL AG specifically alleged that Leader Automotive Group failed to obtain express, informed consent for add-ons.

If you can show that the fees were presented as non-optional, or if the cost was added without proper disclosure and agreement, your claim may still be valid, even if you signed the final contract under pressure.

This is a common issue addressed by the leader automotive group settlement.

Q3. How Would I Know If The Vehicle That I Had Purchased Was A Canadian “Gray-Market” Vehicle?

Ans. If you suspect your vehicle was a Canadian import, check your sales contract for any obscure disclosures. More definitively, examine your vehicle’s VIN (Vehicle Identification Number). A VIN beginning with the number 2 usually indicates the vehicle was built in Canada.

Suppose you bought such a vehicle from a Leader dealer and they sold it as fully covered by the manufacturer’s warranty. In that case, you may have a valid claim under the terms of the Leader Automotive Group settlement.

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Debkanya Bhattacharya

Debkanya Bhattacharya is a legal expert and immigration specialist with over three years of litigation experience at the Calcutta High Court. A First Class law graduate from Calcutta University, she has developed deep expertise in immigration procedures, family-based petitions, and visa compliance. Now part of our legal writing team, Debkanya brings her courtroom insight into every article she writes—translating complex laws into clear, reader-friendly guidance. With an overall experience of 5+ years in the legal field, her legal analyses have been featured on leading platforms in the immigration space, where she’s recognized for her practical, people-focused approach. She’s passionate about ethical and accessible legal writing that empowers individuals to understand their rights. Outside the office, she enjoys John Grisham’s courtroom dramas, Lana Del Rey’s moody soundtracks, and spirited discussions on politics over a cup of black coffee.

Leader Automotive Group Settlement: Largest-Ever Auto Dealer Judgment